Corporate Financial Accounting 14th Edition by Carl Warren,James Reeve,Jonathan Duchac

Exercise 37

Costco, Walmart, Nordstrom: Inventory turnover and number of days' sales in inventory
The general merchandise retail industry has a number of segments represented by the following companies:

For a recent year, the following cost of goods sold and beginning and ending inventories are provided from corporate annual reports (in millions) for these three companies:

A. Determine the inventory turnover ratio for all three companies. (Round all calculations to one decimal place.)
B. Determine the number of days' sales in inventory for all three companies. (Use 365 days and round all calculations to one decimal place.)
C. Interpret these results based on each company's merchandising concept.